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Cotton consumption to increase 20% this year

Feb '07
Cotton consumption target of 202 lakh bales set by Cotton Advisory Board this year is set to reach 218-220 lakh bales, an increase of about 20 percent, compared to last year's consumption.

Major textile companies in India have so far bought almost 90 percent of their cotton requirements for this year. Cotton consumption has reached about 175 lakh bales with four months to go for the season to end, as per industry estimates.

Various cotton markets in the country have received about 185 lakh bales with over 55 lakh bales being carried forward stock from last year.

Major textile players like Vardhman, KSL Industries, Raymond, Sintex, Arvind Mills and Aarvee Denim, were the important buyers, with bulk of these bales bought by them.

These major textile companies need additional cotton of various variety including long and medium staple fibres as they have initiated several projects involving garment, fabric or spinning.

Cotton consumption is set to register similar growth next year, due to further investments in various segments, especially garments, of which many will start production in a year's time.

“There is a definite increase in cotton consumption this year,” said, JN Singh, textile commissioner.

Vardhman and Aarvee purchased about 15 percent to 17 percent more cotton this year while they project a higher purchase next year.

Over 80,000 bales of cotton were bought this season, a rise of about 15 percent to 17 percent to previous year, which is expected to go up to 130,000 bales next year, informed B S Pandit, CFO, Aarvee Denim.

Vardhman has also registered a rise of about 15 percent to 17 percent with purchase of about 7 lakh bales of cotton compared to last year's 6 lakh bales.

KSL Group bought over 5 lakh bales cotton this year compared to about 4 lakh bales of last year.

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